Growth Of Hedge Funds

Growth Of Hedge Funds

Growth Of Hedge Funds

“It’s a confirmed bull market…no, it’s a bear market! Wait a second, it might only be a correction that is turning into a bullish-bearish-sideways-rally.” –the probable sounding inane stock market forecast

With fluctuations so frequent, change is now the norm. Investors are frustrated as they lose years worth of gains in record time. How can we protect ourselves against this volatile market that weaves quicker than an Olympic mogul skier?

Buying into Volatility

One potential avenue to protect against an increase of volatility is VIX options. VIX is a volatility index. If the market is expected to become increasingly volatile over the next 30 days, the index will rise. When traders of the S&P500 futures hypothesize that stabilization is imminent, the volatility index drops.